As both fintech startups and incumbent banks wake up to the lending opportunity presented by the unbanked, alternative credit scoring methods have been on the rise. One such method is psychometric testing, which generates credit scores based on personality and behavior, rather than credit history.

This week, Russia's Sovcombank said it's aiming to grow its customer base by attracting young clients without credit histories looking to obtain their first credit cards. These customers don't have sufficient financial data to generate a conventional credit score. Instead, Sovcombank will use a system developed by the Entrepreneurial Finance Lab (EFL), marketed by US data analytics firm FICO, which scores individuals based on their answers to an interactive online questionnaire. Individuals are asked to answer numerical and linguistic questions, as well as questions about their spending habits, and their responses are used to gain insight into an individual's overall thought processes and behavior patterns — essentially, their personality — which is then used to assess their likelihood of repaying a loan.

As psychometric scoring becomes more popular, however, there are both benefits and drawbacks to consider:

Using psychometric scoring opens up new markets for lenders. According to FICO, there are some 3 billion individuals globally who have never previously borrowed, and therefore have no credit score to evidence this. By assessing consumers on metrics other than a conventional credit score, financial institutions can extend credit to millions more people, thereby gaining more sources of revenue.

However, such methods often have built-in biases. Psychometric tests, which largely assess individuals on verbal and arithmetical skills, assume a certain level of education among respondents, skewing them toward the better-educated. Moreover, such tests can be manipulated, as certain answers — like proficiency with technology and a tendency to save money — are obviously preferred by a lender. In other words, a lender can be told what it wants to hear, and is put at risk of taking on dubious clients. It's worth noting that EFL claims its method avoids this pitfall by giving users the option to select a "I don't understand the question" response; and by keeping assessments simple by asking users how much they feel specific statements apply to them by using a sliding scale.

If alternative credit scoring methods are to add value, they have to be tailored to specific demographics. For example, psychometric testing is only likely to add value if applied to groups like well-educated teenagers and young professionals. Other forms of alt scoring, such as those that draw on individuals' social media data to derive behavioral profiles, are likelier to be more appropriate for people with less privileged backgrounds. To avoid replicating the exclusivity of conventional credit scoring methods, alternative systems should not apply a general standard across significantly varying demographics.

We've entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs.

No firm is immune from the coming disruption and every company must have a strategy to harness the powerful advantages of the new fintech revolution.

The battle already underway will create surprising winners and stunned losers among some of the most powerful names in the financial world: The most contentious conflicts (and partnerships) will be between startups that are completely reengineering decades-old practices, traditional power players who are furiously trying to adapt with their own innovations, and total disruption of established technology & processes:

Traditional Retail Banks vs. Online-Only Banks: Traditional retail banks provide a valuable service, but online-only banks can offer many of the same services with higher rates and lower fees

Traditional Lenders vs. Peer-to-Peer Marketplaces: P2P lending marketplaces are growing much faster than traditional lenders—only time will tell if the banks strategy of creating their own small loan networks will be successful

Traditional Asset Managers vs. Robo Advisors: Robo advisors like Betterment offer lower fees, lower minimums and solid returns to investors, but the much larger traditional asset managers are creating their own robo-products while providing the kind of handholding that high net worth clients are willing to pay handsomely for.

As you can see, this very fluid environment is creating winners and losers before your eyes…and it's also creating the potential for new cost savings or growth opportunities for both you and your company.

After months of researching and reporting this important trend, Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has put together an essential report on the fintech ecosystem that explains the new landscape, identifies the ripest areas for disruption, and highlights the some of the most exciting new companies. These new players have the potential to become the next Visa, Paypal or Charles Schwab because they have the potential to transform important areas of the financial services industry like:

Retail banking

Lending and Financing

Payments and Transfers

Wealth and Asset Management

Markets and Exchanges

Insurance

Blockchain Transactions

If you work in any of these sectors, it's important for you to understand how the fintech revolution will change your business and possibly even your career. And if you're employed in any part of the digital economy, you'll want to know how you can exploit these new technologies to make your employer more efficient, flexible and profitable.

Among the big picture insights you'll get from The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry:

Fintech investment continues to grow. After landing at $19 billion in total in 2015, global fintech funding had already reached $15 billion by mid-August 2016.

The areas of fintech attracting media and investor attention are changing. Insurtech, robo advisors, and digital-only banks are only a few of the segments making waves. B2B fintechs are also playing an increasingly prominent role in the ecosystem.

It's not all good news for fintechs. Major hurdles, including customer acquisition and profitability, remain. As a result, many are becoming more willing to enter partnerships and adjust their business models.

Incumbents are enacting strategies to ensure they remain relevant. Many financial firms have woken up to the threat posed by fintechs and are implementing innovation strategies to stave off disruption. The majority of these strategies involve some interaction with fintech firms.

The relationship between incumbents and fintechs continues to evolve. Fintechs are no longer viewed exclusively as a threat, nor can they be ignored. They are increasingly viewed as partners, but that narrative alone is too simple — in reality, a more nuanced connection is taking hold.

This exclusive report also:

Assesses the state of the fintech industry.

Gives details on the drivers of its growth.

Explains which areas of fintech are gaining traction.

Outlines the range of current and potential models for fintech and incumbent interaction.

The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry is how you get the full story on the fintech revolution.

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The choice is yours. But however you decide to acquire this report, you've given yourself a powerful advantage in your understanding of the fast-moving world of financial technology.